SEZ Rules amended to let units take back goods rejected by domestic buyers, with conditions

Key facts

• The Ministry of Commerce and Industry notified the Special Economic Zones (Third Amendment) Rules, 2026 on October 15, amending Rule 49(2) of the SEZ Rules, 2006.
• SEZ units may now bring back duty-paid goods rejected by domestic tariff area (DTA) buyers within 30 days of clearance, provided the goods' identity is established and the buyer has not availed benefits such as input tax credit.
• Returned goods must be maintained in a separate inventory in an auditable format.
• Units may resell returned goods in original condition to the same or another DTA buyer; the resale is treated as a fresh domestic sale with duty payable under Section 30 of the SEZ Act, and a refund of duty paid at original clearance can be sought separately under Rule 47(5), governed by the Customs Act, 1962.
• The relief applies only when the buyer fails to take delivery due to change in fashion, market conditions, or breach of sale terms, not to every return.
• The amendment also permits DTA-supplied goods to be returned to SEZ units for repairs within six months of clearance, an extended approved period, or the warranty period, whichever is later, with duty payable on the repair value.
• Previously, the rules allowed bringing back DTA-cleared goods only for repairs, with no explicit route for goods whose buyers declined delivery.